Genworth Financial Inc (GNW) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Genworth Financial's second quarter 2025 earnings conference call. My name is Karen, and I will be your coordinator today. (Operator Instructions)

女士們、先生們，早安，歡迎參加 Genworth Financial 2025 年第二季財報電話會議。我叫凱倫 (Karen)，今天我將擔任您的協調員。（操作員指示）

I would now like to turn the presentation over to Christine Jewell, Head of Investor Relations. Please go ahead.

現在，我想將演講交給投資人關係主管克里斯汀‧朱厄爾 (Christine Jewell)。請繼續。

Thank you, and good morning. Welcome to Genworth's second quarter 2025 earnings call. The slide presentation that accompanies this call is available on the Investor Relations section of the Genworth website, investor.genworth.com.

謝謝，早安。歡迎參加 Genworth 2025 年第二季財報電話會議。本次電話會議附帶的幻燈片簡報可在 Genworth 網站的投資者關係部分（investor.genworth.com）上找到。

Our earnings release and financial supplement can also be found there, and we encourage you to review these materials. Speaking today will be Tom McInerney, President and Chief Executive Officer; and Jerome Upton, Chief Financial Officer.

我們的收益報告和財務補充也可以在那裡找到，我們鼓勵您查看這些資料。今天發言的將是總裁兼執行長湯姆·麥金納尼 (Tom McInerney) 和財務長 Jerome Upton。

Following our prepared remarks, we will open the call up for a question-and-answer period. In addition to our speakers, Jamal Arland, President and CEO of our US Life Insurance business; Greg Karawan, General Counsel; Kelly Saltzgaber, Chief Investment Officer; and Samir Shah, CEO of CareScout Services, will also be available to take your questions.

在我們準備好發言之後，我們將進入問答環節。除了我們的演講者之外，我們美國人壽保險業務總裁兼執行長 Jamal Arland、總法律顧問 Greg Karawan、首席投資長 Kelly Saltzgaber 和 CareScout Services 執行長 Samir Shah 也將回答您的問題。

During the call this morning, we may make various forward-looking statements. Our actual results may differ materially from such statements. We advise you to read the cautionary notes regarding forward-looking statements in our earnings release and related presentation as well as the risk factors of our most recent annual report on Form 10-K as filed with the SEC.

在今天早上的電話會議中，我們可能會做出各種前瞻性的陳述。我們的實際結果可能與此類陳述有重大差異。我們建議您閱讀我們收益報告和相關介紹中有關前瞻性陳述的警示說明，以及我們向美國證券交易委員會提交的最新 10-K 表格年度報告中的風險因素。

This morning's discussion also includes non-GAAP financial measures that we believe may be meaningful to investors. In our investor materials, non-GAAP measures have been reconciled to GAAP where required in accordance with SEC rules. Also, references to statutory results are estimates due to the timing of the filing of the statutory statements.

今天早上的討論還包括我們認為可能對投資者有意義的非公認會計準則財務指標。在我們的投資者資料中，非公認會計準則 (non-GAAP) 指標已根據美國證券交易委員會 (SEC) 規則的要求與公認會計準則 (GAAP) 進行了協調。此外，由於法定報表的提交時間，對法定結果的引用只是估計值。

And now I'll turn the call over to our President and CEO, Tom McInerney.

現在我將電話轉給我們的總裁兼執行長湯姆·麥金納尼。

Thank you, Christine, and thank you to everyone on the line for taking the time to join Genworth's second quarter earnings call. Genworth had a solid second quarter as we continue to advance our long-term strategic priorities. Genworth reported net income of $51 million in the quarter.

謝謝你，克里斯汀，也感謝大家抽出時間參加 Genworth 的第二季財報電話會議。隨著我們繼續推進我們的長期戰略重點，Genworth 在第二季度表現穩健。Genworth 報告本季淨收入為 5,100 萬美元。

Adjusted operating income was $68 million or $0.16 per share, driven in large part by another strong quarter from Enact, which contributed $141 million to our adjusted operating income. Total estimated pretax statutory income for our US life insurance companies was $81 million, driven primarily by the net favorable impacts to annuities from equity market and interest rate movement in the quarter. Jerome will discuss this and other financial results in more detail later in the call.

調整後的營業收入為 6,800 萬美元，即每股 0.16 美元，這在很大程度上得益於 Enact 又一個強勁的季度，該季度為我們的調整後營業收入貢獻了 1.41 億美元。我們美國人壽保險公司的稅前法定收入總額估計為 8,100 萬美元，主要受本季股票市場和利率變動對年金的淨有利影響。傑羅姆將在稍後的電話會議中更詳細地討論這一結果和其他財務結果。

Our liquidity position remains strong as we ended the quarter with cash and liquid assets of $248 million. During the quarter, we continued to execute and drive progress against our three strategic priorities. First, Enact remains a key source of cash flow and continues to generate strong value for Genworth shareholders as its market value increases.

我們的流動性狀況依然強勁，本季末我們的現金和流動資產為 2.48 億美元。本季度，我們持續執行並推動三大策略重點的進展。首先，Enact 仍然是現金流的主要來源，隨著其市值的成長，繼續為 Genworth 股東創造強勁價值。

As you may have seen, Enact announced yesterday that it now expects to return approximately $400 million of capital to shareholders this year, underscoring its continued operational strength and robust financial performance.

正如大家所看到的，Enact 昨天宣布，預計今年將向股東返還約 4 億美元的資本，這凸顯了其持續的營運實力和強勁的財務業績。

Since Enact's IPO in 2021, our stake in Enact has provided Genworth with over $1 billion in capital returns supporting our ability to buy back shares. Since our current buyback program's initial authorization, we have repurchased a total of $630 million worth of shares at an average price of $5.80 as of July 30.

自 2021 年 Enact 首次公開發行 (IPO) 以來，我們在 Enact 的股份已為 Genworth 帶來了超過 10 億美元的資本回報，支持了我們回購股票的能力。自從我們目前的回購計畫首次獲得授權以來，截至 7 月 30 日，我們已以平均 5.80 美元的價格回購了總價值 6.3 億美元的股票。

Turning to our next strategic priority. We continue to maintain our self-sustaining customer-centric, LTC life and annuity legacy businesses. We've done this primarily by executing on our multiyear rate action program or MYRAP, which has proven to be our most effective lever for maintaining self-sustainability. We secured $41 million of gross incremental premium approvals in the second quarter with an average premium increase of 36%.

談談我們的下一個戰略重點。我們將繼續維持以客戶為中心、自我維持的長期人壽和年金傳統業務。我們主要透過執行多年期利率行動計劃（MYRAP）來實現這一目標，事實證明，該計劃是我們維持自我可持續性的最有效槓桿。我們在第二季度獲得了 4,100 萬美元的增量保費批准，平均保費增加了 36%。

This brings us to a cumulative total of approximately $31.6 billion in net present value achieved. As discussed on last quarter's call, we continue to anticipate lower approvals this year compared to 2024 and in line with our long-term plans for the program. Our third and final strategic priority is driving long-term growth through CareScout. CareScout is designed to create value for Genworth in three ways. Delivering savings to our US life insurance companies, providing new sources of revenue and growing Genworth's valuation over the long term.

這使我們累計實現的淨現值約為 316 億美元。正如上個季度的電話會議所討論的那樣，我們預計今年的批准數量將低於 2024 年，這符合我們對該計劃的長期計劃。我們的第三個也是最後一個策略重點是透過 CareScout 推動長期成長。CareScout 旨在透過三種方式為 Genworth 創造價值。為我們的美國壽險公司節省開支，提供新的收入來源，並長期提高 Genworth 的估值。

On the services side, we expanded our product offerings with the launch of care plans as we work to help people understand and find the long-term care services they need. For about $250, you can initiate a care plan from carescout.com that begins with a virtual care evaluation conducted by a CareScout-licensed nurse.

在服務方面，我們透過推出護理計劃擴大了產品範圍，致力於幫助人們了解和找到他們需要的長期護理服務。只需花費約 250 美元，您就可以從 carescout.com 啟動護理計劃，該計劃首先由 CareScout 執照護理師進行虛擬護理評估。

Families then received a detailed plan that suggests appropriate care strategies and local resources tailored to the individual's physical, cognitive, social and environmental needs.

然後，家庭會收到一份詳細的計劃，其中建議根據個人的身體、認知、社會和環境需求制定適當的護理策略和當地資源。

For the millions of caregivers who may be overwhelmed by the urgency or complexity of their loved ones care needs, a care plan can be a helpful resource in understanding the level and type of care need along with options to meet those needs.

對於數百萬可能因親人照護需求的緊迫性或複雜性而不知所措的護理人員來說，護理計劃可以成為有用的資源，幫助他們了解護理需求的等級和類型以及滿足這些需求的選擇。

Turning to the CareScout Quality Network. We recently expanded network access to consumers in all 50 states. Anyone searching for home care can now access the network through carescout.com where you can filter for location and specific care needs to connect with quality providers. Providers cover the cost of the network by paying fees associated with successful care placements.

轉向 CareScout 品質網路。我們最近將網路存取範圍擴大到全美 50 個州的消費者。任何尋求家庭護理的人現在都可以透過 carescout.com 存取網絡，您可以在其中篩選位置和特定的護理需求，以便與優質提供者聯繫。提供者透過支付與成功護理安置相關的費用來承擔網路成本。

In addition to helping families navigate the aging journey, the new care plans offering and the expansion of the network will contribute to fee-based revenue growth in line with our strategy of diversifying earnings and scaling our capital-light services business.

除了幫助家庭度過老化旅程之外，新的照護計畫和網路的擴展還將促進收費收入的成長，這符合我們多元化獲利和擴大輕資本服務業務的策略。

We also continue to work with insurance carriers with closed LTC blocks to leverage the network as an enhancement to their customer experience and claims management strategy. We have ongoing pilots with two carriers, and we are engaged in constructive discussions with several others about tapping into the network potentially making this channel a significant source of future revenues.

我們也繼續與擁有封閉式 LTC 區塊的保險公司合作，利用該網路來增強他們的客戶體驗和索賠管理策略。我們正在與兩家營運商進行試點，並且正在與其他幾家營運商進行建設性討論，探討如何利用該網絡，使該通路成為未來收入的重要來源。

The network continues to grow, now comprising nearly 650 home care providers, approximately 90% of whom have agreed to rates below the median cost of care and their respective zip codes. We also expect to add assisted living communities to the network in the coming months, expanding the care settings available through the network. The network now covers greater than 90% of the age 65-plus census population in the US and continued strong interest among care providers indicates that we have a significant runway ahead of us in growing and sustaining the network.

該網絡不斷發展，目前包括近 650 家家庭護理提供商，其中約 90% 同意低於其各自郵政編碼的平均護理費用的費率。我們也希望在未來幾個月內將輔助生活社區添加到網路中，擴大可透過網路提供的護理環境。該網絡目前覆蓋了美國 90% 以上的 65 歲以上人口，而護理提供者的持續濃厚興趣表明我們在發展和維持網絡方面還有很長的路要走。

We achieved nearly 1,400 successful matches so far this year between Genworth LTC policyholders and CareScout quality network providers as of the end of the second quarter. We have raised our full year estimate to 2,850 matches.

截至第二季末，今年迄今為止，我們在 Genworth LTC 保單持有人和 CareScout 優質網路供應商之間實現了近 1,400 次成功匹配。我們已將全年比賽數量預期上調至 2,850 場。

As the network and CareScout brand awareness grow, we predict that a larger portion of Genworth's LTC claimants will choose care options within network providers, helping them maximize each benefit dollar and enabling Genworth to realize an estimated $1 billion to $1.5 billion in claims savings over time.

隨著網路和 CareScout 品牌知名度的不斷提高，我們預測 Genworth 的大部分 LTC 索賠人將選擇網路提供者內的護理選項，幫助他們最大化每一美元的福利，並使 Genworth 隨著時間的推移實現約 10 億至 15 億美元的索賠節省。

Shifting to CareScout Insurance, we expect to reenter the market with our inaugural low-risk stand-alone LTC insurance product later this year. This product offers a compelling customer value proposition as the cost of care continues to rise and will be priced conservatively to reduce risk, deliver attractive returns and help mitigate the need for future rate increases.

轉向 CareScout 保險後，我們預計將在今年稍後憑藉我們首個低風險獨立 LTC 保險產品重新進入市場。隨著護理成本的不斷上升，該產品提供了引人注目的客戶價值主張，並將採用保守的定價以降低風險、提供有吸引力的回報並有助於減輕未來費率上漲的需要。

The new product has already secured approvals in 29 jurisdictions and we are targeting approvals in 30 to 35 states ahead of our launch. Additionally, we submitted a worksite version of the product to the Interstate Insurance Compact enabling distribution through employers and association channels.

新產品已在 29 個司法管轄區獲得批准，我們的目標是在推出之前在 30 至 35 個州獲得批准。此外，我們也向州際保險契約提交了該產品的工作現場版本，以便透過雇主和協會管道進行分發。

Our initial capital investment in CareScout Insurance this year represents the majority of the funding we expect to allocate to this business over the next three years due in part to the delayed timing of the expected funding of CareScout Insurance and resulting decrease in investment income earned in the entity in 2025, we are modestly increasing our expected 2025 investment from $75 million to $85 million to meet the regulatory requirements to maintain sufficient capital to cover losses by a multiple of five as we establish CareScout Insurance.

我們今年對 CareScout Insurance 的初始資本投資占我們預計在未來三年分配給該業務的資金的大部分，部分原因是 CareScout Insurance 預期融資時間的延遲，導致 2025 年該實體獲得的投資收益減少，我們將 2025 年預期投資從 7500 萬美元適度增加到 8500 萬美元，以滿足Scout Insurance 時保持監管的足夠資本。

Future capital contributions may vary based on sales level and mix in addition to investment performance and operating expenses. Last week, we shared that the UK High Court has issued a favorable judgment in the AXA and Santander litigation finding Santander liable for losses resulting from the misselling of payment protection insurance.

未來的資本貢獻可能因銷售水準和組合以及投資績效和營運費用而異。上週，我們分享了英國高等法院在 AXA 和 Santander 訴訟中作出有利判決的消息，裁定 Santander 對因支付保護保險誤售而造成的損失負有責任。

We are pleased with the court's judgment which validates our long-standing belief that Santander bears responsibility for these legacy liabilities. The court awarded acts damages, interest, costs and expenses of approximately GBP680 million or $911 million using a GBP1 to $1.34 exchange rate.

我們對法院的判決感到滿意，這證實了我們長期以來的信念，即桑坦德銀行應對這些遺留債務負責。法院判決該行為賠償損失、利息、成本和費用約為 6.8 億英鎊，以 1 英鎊兌 1.34 美元的匯率計算，約為 9.11 億美元。

While the trial court denied Santander's initial request for permission to appeal, the court's judgment is still subject to Santander seeking permission to appeal from the Appellate Court. If the judgment is paid in full and any appeals are favorably resolved, Genworth would expect to recover, at that time, approximately $750 million. These proceeds have not been factored into our capital allocation plans.

雖然初審法院駁回了桑坦德銀行最初的上訴請求，但法院的判決仍取決於桑坦德銀行是否向上訴法院尋求上訴許可。如果判決金額全額支付且所有上訴均得到有利解決，Genworth 預計將收回約 7.5 億美元。這些收益尚未計入我們的資本配置計劃。

Once received, we plan to deploy them in line with our stated capital allocation priorities, investing in growth through CareScout, returning cash to shareholders through our buyback program and opportunistically paying down debt.

一旦收到資金，我們計劃根據我們所述的資本配置優先事項進行部署，透過 CareScout 投資成長，透過我們的回購計畫向股東返還現金，並適時償還債務。

Before I turn it over to Jerome, I'd like to briefly address recent policy developments affecting the US long-term care landscape such as the Medicaid changes included in the recently passed tax and budget legislation. Medicaid remains the pair of last resort as well as the primary payer for long-term care services in the US I believe the rising cost of LTC services for baby boomers, particularly the 95% who lack private LTC insurance coverage and the pressures on families and Medicaid financial resources will make the discounts provided by CareScout's quality network even more valuable in the future.

在將發言權交給傑羅姆之前，我想簡要介紹一下影響美國長期照護格局的最新政策發展，例如最近通過的稅收和預算立法中包含的醫療補助變化。醫療補助仍然是美國長期照護服務的最後手段和主要支付者。我相信，嬰兒潮世代的長期照護服務成本不斷上升，特別是 95% 缺乏私人長期照護保險的人，以及家庭和醫療補助財務資源面臨的壓力，將使 CareScout 優質網路提供的折扣在未來更有價值。

The number of 80-year-old baby boomers is expected to double by 2045. 90% seniors today have a strong preference for at-home care while about 30% of seniors report difficulties with activities of daily living. As detailed in our latest cost of care report, home care costs have surpassed $77,000 per year on average, and costs have increased significantly in the last few years.

預計到 2045 年，80 歲嬰兒潮世代的數量將增加一倍。目前 90% 的老年人強烈傾向於在家中接受護理，而約 30% 的老年人表示在日常生活活動中遇到困難。正如我們最新的護理費用報告中所述，家庭護理費用平均每年超過 77,000 美元，並且過去幾年費用大幅增加。

As the long-term care funding crisis comes into greater focus, we are encouraged to see momentum in Congress towards identifying innovative, sustainable solutions like the WISH Act of bipartisan bill cosponsored by representatives, Tom Suozzi of New York and John Moolenaar of Michigan.

隨著長期照護資金危機日益受到關注，我們很高興看到國會正在積極尋找創新、可持續的解決方案，例如由紐約州眾議員湯姆·蘇奧齊和密西根州眾議員約翰·穆勒納爾共同發起的兩黨法案《WISH法案》。

The WISH Act would establish a public-private framework to provide financial support for individuals requiring long-term care while also encouraging broader access to private insurance products. We believe private market solutions like those offered by CareScout represent a critical step forward.

《WISH法案》將建立一個公私框架，為需要長期照護的個人提供財務支持，同時鼓勵更廣泛地獲得私人保險產品。我們相信，像 CareScout 提供的那樣的私人市場解決方案代表著向前邁出的關鍵一步。

A combination of modern LTC insurance and services products improved access to quality care and practical care navigation can significantly mitigate the growing strain on public programs like Medicaid.

現代長期照護保險和服務產品相結合，改善了優質護理和實用護理導航的可及性，可以顯著減輕醫療補助等公共計畫日益增加的壓力。

In closing, we are very encouraged by the steady progress we've made across Genworth's three strategic priorities and by the financial strength and operational performance we continue to see at Enact. We remain confident in our ability to execute and sustain this momentum through the remainder of 2025.

最後，我們對 Genworth 三大策略重點所取得的穩定進展以及 Enact 持續展現的財務實力和營運績效感到非常鼓舞。我們對自己在 2025 年剩餘時間內執行並保持這股勢頭的能力充滿信心。

With that, I'll hand it over to Jerome for a more in depth review of our financial performance.

說完這些，我將把工作交給傑羅姆，讓他對我們的財務表現進行更深入的審查。

Thank you, Tom, and good morning, everyone. We continue to build on our solid foundation, enhanced financial flexibility and deliver on our strategic priorities. Enact once again drove robust operating performance and continues to maintain a strong capital and liquidity position. We also advanced our multiyear rate action plan made significant progress building CareScout and continued to return capital to shareholders.

謝謝你，湯姆，大家早安。我們將繼續鞏固基礎，增強財務靈活性，並實現我們的策略重點。Enact 再次實現了強勁的經營業績，並繼續保持強勁的資本和流動性狀況。我們還推進了多年利率行動計劃，在建設 CareScout 方面取得了重大進展，並繼續向股東返還資本。

I'll start with an overview of our financial performance and drivers, then provide an update on our investment portfolio and holding company liquidity before we open the call for Q&A. As shown on slide 7, second quarter adjusted operating income was $68 million, driven by Enact.

我將首先概述我們的財務表現和驅動因素，然後在我們開始問答環節之前提供有關我們的投資組合和控股公司流動性的最新資訊。如投影片 7 所示，第二季調整後的營業收入為 6,800 萬美元，這得益於 Enact。

Our Long-Term Care Insurance segment reported an adjusted operating loss of $37 million driven by a remeasurement loss primarily related to unfavorable actual variances from expected experience or A2E. The unfavorable A2E of $42 million was driven by lower terminations and higher benefit utilization, partially offset by the recapture of a block of LTC policies previously assumed by Genworth resulting in a pretax gain of $26 million in the quarter.

我們的長期照護保險部門報告調整後營業虧損 3,700 萬美元，主要原因是與預期經驗或 A2E 的不利實際差異相關的重估損失。4,200 萬美元的不利 A2E 是由於終止率較低和福利利用率較高所致，但部分被 Genworth 先前承擔的一批 LTC 政策的收回所抵消，導致本季度稅前收益為 2600 萬美元。

As we have previously noted in 2023 and 2024, we saw an average quarterly loss from the A2E of about $65 million in LTC. While the favorable seasonal impact from mortality we observed in the first quarter subsided as anticipated, we continue to expect that we could see losses at this average level throughout 2025.

正如我們之前在 2023 年和 2024 年所指出的，我們看到 A2E 的平均季度損失約為 6500 萬美元的 LTC。雖然我們在第一季觀察到的死亡率帶來的有利季節性影響如預期般消退，但我們仍然預計，2025 年全年的損失仍將保持在這一平均水平。

As a reminder, quarterly fluctuations in US GAAP results do not impact our cash flows, economic value or how we manage the business. Life and Annuities reported an adjusted operating loss of $7 million in the second quarter. This included an adjusted operating loss of $20 million in life insurance, which improved versus the prior quarter due to lower mortality, partially offset by adjusted operating income of $13 million from annuities.

提醒一下，美國 GAAP 結果的季度波動不會影響我們的現金流量、經濟價值或我們如何管理業務。人壽和年金業務報告第二季調整後的營業虧損為 700 萬美元。其中包括人壽保險調整後的 2,000 萬美元營業虧損，由於死亡率下降，虧損較上一季度有所改善，但年金調整後的 1,300 萬美元營業收入部分抵消了這一損失。

In Corporate and Other, we reported a $29 million loss for the second quarter, which was higher than the prior year loss of $10 million, primarily driven by favorable tax timing in the second quarter of 2024.

在企業及其他業務方面，我們報告第二季虧損 2,900 萬美元，高於去年同期的 1,000 萬美元虧損，主要原因是 2024 年第二季的稅收時機有利。

Now taking a closer look at Enact's second quarter performance on slide 8. Enact delivered $141 million in adjusted operating income, up slightly versus the prior quarter, but down versus the prior year, reflecting a lower reserve release. Primary insurance in-force grew 1% year-over-year to $270 billion supported by new insurance written and continued elevated persistency.

現在我們仔細看看幻燈片 8 上的 Enact 第二季的表現。Enact 實現調整後營業收入 1.41 億美元，較上一季略有上升，但較上年同期下降，反映出儲備金釋放減少。受新保額成長和持續性提高的支撐，主要有效保險金額較去年同期成長 1%，達到 2,700 億美元。

As shown on slide 9, Enact's favorable $48 million pretax reserve release drove a loss ratio of 10%. Enact's estimated PMIERs sufficiency ratio remained strong at 165% or approximately $2 billion above requirements. Genworth share of Enact's book value, including AOCI, has increased to $4.2 billion at the end of the second quarter, up from $4.1 billion at year-end 2024.

如投影片 9 所示，Enact 有利的 4,800 萬美元稅前儲備金釋放導致損失率達到 10%。Enact 估計 PMIER 充足率仍保持在 165% 的強勁水平，或比要求高出約 20 億美元。Genworth 在 Enact 帳面價值中的份額（包括 AOCI）已從 2024 年底的 41 億美元增至第二季末的 42 億美元。

Enact continues to deliver significant capital returns to Genworth, including $94 million returned in the second quarter. Looking ahead, Enact continues to operate with solid business fundamentals and a strong balance sheet and is well positioned to navigate the uncertainties in the macroeconomic environment.

Enact 繼續為 Genworth 帶來可觀的資本回報，其中包括第二季的 9,400 萬美元回報。展望未來，Enact 將繼續憑藉穩固的業務基礎和強勁的資產負債表開展運營，並有能力應對宏觀經濟環境中的不確定性。

As Tom mentioned, Enact now expects to return a total of approximately $400 million to its shareholders in 2025. Based on our approximate 81% ownership position, we now expect to receive around $325 million from Enact for the full year.

正如湯姆所提到的，Enact 目前預計到 2025 年將向股東返還總計約 4 億美元。根據我們約 81% 的所有權地位，我們現在預計全年將從 Enact 獲得約 3.25 億美元的收入。

Turning to long-term care insurance on slide 10. We continue to proactively manage LTC risk and maintain self-sustainability in the legacy US life insurance companies. Our multiyear rate action plan or MYRAP, remains our most effective tool for reducing tail risk in LTC. As of the end of the second quarter, we have achieved approximately $31.6 billion of in-force rate actions on a net present value basis.

前往投影片 10 上的長期照護保險。我們持續積極管理長期照護風險，並維持美國傳統人壽保險公司的自我永續發展。我們的多年利率行動計劃或 MYRAP 仍然是我們降低 LTC 尾部風險的最有效工具。截至第二季末，我們已以淨現值實現約 316 億美元的有效利率行動。

As part of the MYRAP, we offer a suite of options to help policyholders manage premium increases while maintaining meaningful coverage and to enable us to reduce our exposure to certain higher cost benefit features such as 5% compound benefit inflation options and large lifetime benefit amounts.

作為 MYRAP 的一部分，我們提供了一系列選項，幫助保單持有人管理保費增長，同時保持有意義的保障，並使我們能夠減少某些較高成本效益特徵的風險，例如 5% 複合福利通膨選項和大額終身福利金額。

About 60% of our policyholders offer a benefit reduction have elected to do so lowering our long-term risk. These initiatives have helped reduce our exposure to individual LTC policies with the 5% compound benefit inflation feature decreasing notably to approximately 36%, down from 57% in 2014.

大約 60% 的保單持有人選擇減少福利，從而降低我們的長期風險。這些措施有助於減少我們對個人長期照護保險政策的風險敞口，其中 5% 複合福利通膨特徵顯著下降至約 36%，低於 2014 年的 57%。

In addition to the MYRAP and other benefit reduction strategies, we're reducing risk in innovative ways, including through the CareScout Quality Network and our Live+Well, AgeWell intervention program, which deliver value for policyholders while also driving claim savings over time.

除了 MYRAP 和其他福利減少策略外，我們還透過創新方式降低風險，包括透過 CareScout 品質網路和我們的 Live+Well、AgeWell 幹預計劃，這些計劃為保單持有人帶來價值，同時也隨著時間的推移節省索賠費用。

As we have said before, we are committed to managing the US life insurance companies as a closed system, leveraging their existing reserves and capital to cover future claims. We will not put capital into the legacy life insurance companies and given the long-tail nature of our LTC insurance policies with peak claim years still over a decade away, we do not expect capital returns from these companies.

正如我們之前所說，我們致力於將美國人壽保險公司作為一個封閉的系統進行管理，並利用其現有的儲備和資本來支付未來的索賠。我們不會將資金投入傳統人壽保險公司，考慮到我們的長期照護保險政策的長尾特性，索賠高峰期仍需十多年時間才能到來，我們並不期望從這些公司獲得資本回報。

Slide 11 shows statutory pretax results for the US life insurance companies with income of $81 million for the quarter. The LTC loss of $26 million reflected the anticipated decline from seasonally high mortality in the first quarter. Earnings from in-force rate actions of $342 million were down from $445 million in the prior year as the prior year included a significant benefit from the implementation of the LTC legal settlements which are now complete.

幻燈片 11 顯示了美國人壽保險公司本季收入 8,100 萬美元的法定稅前業績。2,600 萬美元的長期照護損失反映了第一季季節性高死亡率帶來的預期下降。有效利率行動的收益為 3.42 億美元，低於上年的 4.45 億美元，因為去年包含了現已完成的 LTC 法律和解實施帶來的重大收益。

Life Insurance reported income of $18 million, driven by favorable seasonal impacts versus the prior quarter and our Annuity products reported income of $89 million, reflecting the net favorable impact of equity market and interest rate movements in the quarter.

人壽保險報告收入為 1800 萬美元，受有利的季節性影響，與上一季相比，我們的年金產品報告收入為 8900 萬美元，反映了本季度股票市場和利率變動的淨有利影響。

The consolidated risk-based capital ratio for Genworth Life Insurance Company, or GLIC, is estimated to be 304% at the end of June, consistent with the end of March, reflecting strong statutory earnings, offset by higher required capital from continued investment in the limited partnership portfolio.

截至 6 月底，Genworth 人壽保險公司 (GLIC) 的綜合風險資本比率估計為 304%，與 3 月底持平，這反映了強勁的法定收益，但有限合夥投資組合的持續投資所需的更高資本抵消了這一影響。

GLIC's consolidated balance sheet remains sound with capital and surplus of $3.6 billion as of the end of June. Our final statutory results will be available on our investor website with our second quarter filings later this month.

截至 6 月底，GLIC 的合併資產負債表依然穩健，資本和盈餘為 36 億美元。我們的最終法定結果將於本月稍後與我們的第二季文件一起在我們的投資者網站上公佈。

Moving to our investment portfolio, which is summarized on slide 12. We remain confident in our positioning and believe we have the right strategy to remain resilient and navigate periods of market volatility. The majority of our assets are in investment-grade fixed maturities along with an allocation to alternatives. Collectively, we continue to invest in these assets on behalf of our life insurance companies at yields of approximately 7%.

轉到我們的投資組合，第 12 頁對此進行了總結。我們對自己的定位充滿信心，並相信我們擁有正確的策略來保持韌性並度過市場波動期。我們的資產大部分都是投資等級固定期限的，同時也分配了另類投資。總的來說，我們繼續代表我們的人壽保險公司投資這些資產，收益率約為 7%。

Our net investment income for the quarter reflects both improved distributions and valuations from our alternatives portfolio which is composed mainly of diversified private equity investments and has targeted returns of approximately 12%.

本季我們的淨投資收益反映了我們的另類投資組合的分配和估值的改善，該投資組合主要由多元化私募股權投資組成，目標回報率約為 12%。

As a reminder, the alternative asset program has the potential to experience uneven performance from quarter-to-quarter based on market volatility, but we are focused on investing for the long term, where we are confident that our track record of robust returns will prevail. We remain committed to growing our alternative assets within regulatory limitations as it is a natural fit with long-tail liabilities.

提醒一下，另類資產計劃可能會因市場波動而出現季度間表現不均衡的情況，但我們專注於長期投資，我們相信我們強勁的回報記錄將佔上風。我們仍然致力於在監管限制範圍內發展我們的另類資產，因為它與長尾負債自然契合。

Next, turning to the holding company on slide 13. We received $94 million in capital from Enact and ended the quarter with $248 million of cash and liquid assets or $120 million net of advanced cash payments from our subsidiaries for future obligations of approximately $128 million.

接下來，前往第 13 張投影片上的控股公司。我們從 Enact 獲得了 9,400 萬美元的資本，並在本季末擁有 2.48 億美元的現金和流動資產，或 1.2 億美元的淨額，扣除我們子公司為未來債務支付的約 1.28 億美元的預付現金。

This includes the remainder of our initial capital investment of $85 million into the new CareScout Insurance company this year. We exclude these advanced cash payments when evaluating holding company liquidity for the purpose of capital allocation and calculating the buffer to our debt service target.

這包括我們今年對新 CareScout 保險公司 8,500 萬美元初始資本投資的剩餘部分。在評估控股公司流動性以進行資本配置和計算債務償還目標的緩衝時，我們排除了這些預付現金支付。

Turning to capital on slide 14. We also expect to invest approximately $45 million to $50 million in CareScout services in 2025 as we continue to build out the platform. This investment will go towards adding new products and customers, establishing a strong foundation to scale the business.

轉向第 14 張投影片上的資本。隨著我們繼續建立平台，我們也預計在 2025 年向 CareScout 服務投資約 4,500 萬至 5,000 萬美元。這項投資將用於增加新產品和新客戶，為擴大業務規模奠定堅實的基礎。

Moving to shareholder returns. We repurchased $30 million of shares in the second quarter at an average price of $7.01 per share and another $10 million in July. For the full year 2025, we now expect to allocate between $100 million to $150 million to share repurchases which excludes any potential proceeds from the successful resolution of the AXA litigation matter. This range may vary depending on business performance, market conditions, holding company cash and our share price.

轉向股東回報。我們在第二季以平均每股 7.01 美元的價格回購了價值 3,000 萬美元的股票，並在 7 月回購了價值 1,000 萬美元的股票。對於 2025 年全年，我們目前預計將分配 1 億至 1.5 億美元用於股票回購，這不包括成功解決 AXA 訴訟問題所帶來的任何潛在收益。此範圍可能根據業務表現、市場條件、控股公司現金和我們的股價而有所不同。

We're very pleased with the value we've created for shareholders through our share repurchase program. Our holding company debt stands at $790 million, and we have financial flexibility given the strength of our balance sheet and sustainable cash flows from Enact. We continue to maintain a disciplined capital structure with a cash interest coverage ratio of approximately 6%.

我們對透過股票回購計畫為股東創造的價值感到非常滿意。我們的控股公司債務為 7.9 億美元，鑑於我們資產負債表的強勁和來自 Enact 的可持續現金流，我們擁有財務靈活性。我們繼續保持嚴格的資本結構，現金利息覆蓋率約為 6%。

As Tom mentioned, we are pleased with the court's judgment in the AXA Santander litigation. If the judgment is paid in full and any appeals are favorably resolved, Genworth would expect to recover at that time, approximately $750 million, subject to movements in foreign exchange rates. We do not expect to pay taxes on this recovery.

正如湯姆所提到的，我們對法院對 AXA Santander 訴訟的判決感到滿意。如果判決全額支付且所有上訴均得到有利解決，Genworth 預計屆時將收回約 7.5 億美元，但具體金額取決於外匯匯率的變動。我們預計不會為這次復甦繳稅。

These proceeds have not been factored into our capital allocation plans, but our capital allocation priorities remain unchanged. We will continue to invest in long-term growth through CareScout, return cash to shareholders through our share repurchase program when our share price trades below intrinsic value and opportunistically retired debt.

這些收益尚未計入我們的資本配置計劃，但我們的資本配置優先順序保持不變。我們將繼續透過 CareScout 投資於長期成長，當我們的股價低於內在價值時透過我們的股票回購計畫向股東返還現金，並適時償還債務。

In closing, we're delivering on our strategic priorities, while proactively managing our liabilities and risk. The multiyear rate action plan and additional risk mitigation strategies are ensuring the self-sustainability of the legacy LTC block, and we will continue to focus on delivering sustainable long-term growth through Enact and CareScout while returning meaningful value to shareholders through share repurchases and opportunistic debt retirement.

最後，我們正在實現我們的策略重點，同時積極管理我們的負債和風險。多年利率行動計劃和額外的風險緩解策略確保了傳統 LTC 區塊的自我可持續性，我們將繼續專注於透過 Enact 和 CareScout 實現可持續的長期成長，同時透過股票回購和機會性債務償還為股東帶來有意義的價值。

Now let's open up the line for questions.

現在讓我們開始提問。

(Operator Instructions)

（操作員指示）

Ryan Krueger, KBW.

瑞安·克魯格（Ryan Krueger），KBW。

Hey, thanks. Good morning. I had some questions on the lawsuit. The first one was on the appeal at the Appellate Court. Can you give us any color on the process there, give any sense of when a decision either way to be made?

嘿，謝謝。早安.我對這起訴訟有一些疑問。第一個是關於上訴法院的上訴。您能否向我們詳細介紹一下這個過程並告訴我們何時需要做出決定？

Good question, Ryan. Obviously, a lot of shareholders are interested in that. I've asked Greg Karawan, our General Counsel to be here. He has been London throughout the court trial and has obviously a good understanding of the process. So I'd just ask Greg to give you and the other investors and people on the call an update on what the process is from here going forward.

問得好，瑞安。顯然，許多股東對此感興趣。我已經邀請我們的總法律顧問格雷格·卡拉萬 (Greg Karawan) 來這裡。整個庭審期間他一直在倫敦，顯然對整個過程非常了解。因此，我只想請格雷格向您和其他投資者以及電話會議中的其他人介紹未來的進展。

Thanks, Tom, and thanks for the question, Ryan. So unlike in the United States, where most of people will be familiar with, there is no appeal as of right in the United Kingdom, instead permission needs to be sought and granted. Permission could be sought directly from the trial court or from the Appellate Court. As Tom mentioned in his prepared remarks, Santander already sought permission from the trial judge, and that was denied.

謝謝，湯姆，也謝謝你的提問，瑞安。因此，與大多數人熟悉的美國不同，在英國沒有上訴權，而是需要尋求並獲得許可。可以直接向初審法院或上訴法院尋求許可。正如湯姆在準備好的發言中提到的那樣，桑坦德銀行已經向審判法官尋求許可，但遭到了拒絕。

Santander now has until August 15 to seek permission from the Appellate Court. Once that permission is requested, the Appellate Court would likely take about two to three months to decide whether to grant permission. If permission is denied, case is pretty much over. If permission is granted, it could take anywhere from 12 to 18 months, inclusive of the time -- the two to three months for the request for permission for the appeal to be decided.

桑坦德銀行目前必須在 8 月 15 日之前向上訴法院尋求許可。一旦提出許可請求，上訴法院可能需要大約兩到三個月的時間來決定是否給予許可。如果許可被拒絕，案件就基本結束了。如果獲得許可，則可能需要 12 到 18 個月的時間，其中包括決定上訴許可請求的兩到三個月的時間。

Thanks. One quick follow-up on that. So I guess if they did grant permission in the Appellate Court for 18 months, would the payment not occur until after that 12-to-18-month process and everything was decided? Or would it -- because I recall going back to the Genworth AXA case that I thought you actually had to pay them prior to the appeal being decided?

謝謝。對此進行快速跟進。因此，我想，如果他們確實在上訴法院批准了 18 個月的許可，那麼付款是否要等到 12 到 18 個月的流程結束後，並且一切都已決定之後才會發生？或者會這樣——因為我記得回到 Genworth AXA 案，我認為你實際上必須在上訴決定之前向他們付款？

Yeah, that's right. And there is no stay of the judgment. The court's order requiring payment by August 15 is still in place. It's not been adjusted. There is no automatic stay and no stay has been sought. So as of today, payment is still required by August 15.

是的，沒錯。並且判決不會中止。法院要求在 8 月 15 日之前付款的命令仍然有效。沒有調整。不存在自動中止，也未尋求中止。因此截至今天，仍需在 8 月 15 日之前付款。

Okay. Great. And then related follow-up was just on the use of proceeds. I heard your comments on potential uses. I guess another possibility, it sounds like this isn't your plan, but I just wanted to check on it.

好的。偉大的。然後相關的後續工作就是關於收益的使用。我聽到了您對潛在用途的評論。我猜還有另一種可能性，聽起來這不是你的計劃，但我只是想檢查一下。

I guess another possibility would be you pay down Genworth's debt and you spin off Enact and then that would result in an elimination probably of the discount your stock trades relative to the implied sum of the parts value. So just want to have some updated thoughts on that. Is that being considered at all? Or do you feel like there's reasons not to pursue that path?

我想另一種可能性是你償還 Genworth 的債務並剝離 Enact，這可能會導致你的股票交易相對於零件價值的隱含總和的折扣消失。所以只是想對此有一些最新的想法。有考慮過這個嗎？還是您覺得有理由不走這條路？

So Ryan, I think for use of proceeds, Jerome and I are still looking at that. I think what you'll see is, as in the past, a significant amount of that will be used for share buybacks and then opportunities if there are any further CareScout investments, although we don't see a significant faster investment in there unless there are inorganic small add-on acquisition opportunities which they come to us from time to time and then opportunistically repurchasing debt.

所以瑞安，我認為對於收益的用途，傑羅姆和我仍在考慮這個問題。我認為，您會看到，與過去一樣，其中很大一部分將用於股票回購，然後如果有任何進一步的 CareScout 投資，則用於投資機會，儘管我們不認為那裡會有顯著的快速投資，除非有無機小型附加收購機會（他們不時向我們提供），然後機會性地回購債務。

But I want to remind, it's a great question. We get it a lot. I want to remind you and the market investors that just paying down the debt does not allow us to do the spin-off. I laid out in the annual meeting because we have -- we get a lot of questions on this, the RemainCo, even if we used all the proceeds and ongoing proceeds from Enact to eliminate the $790 million of debt, we still can't do the spin-off. It's not viable because the RemainCo which would then be the US Life businesses, Long-Term Care, Life & Annuity and the CareScout businesses, none of those have positive cash flow that can be paid to the holding company.

但我想提醒一下，這是一個很好的問題。我們經常遇到這種情況。我想提醒您和市場投資者，僅僅償還債務並不能讓我們進行分拆。我在年度會議上闡述了這一點，因為我們——我們對此有很多疑問，RemainCo，即使我們使用 Enact 的所有收益和持續收益來消除 7.9 億美元的債務，我們仍然無法進行分拆。這是不可行的，因為 RemainCo 將是美國人壽業務、長期照護、人壽和年金以及 CareScout 業務，而這些業務都沒有可以支付給控股公司的正現金流。

Therefore, we -- the spin is something we will look at, but what it will require would be that the CareScout businesses achieved breakeven, and we've said -- we think that's around 5 years. And then once they are in a position to be a regular dividend payer which we expect at some point, then the spin-off option is viable.

因此，我們會考慮分拆，但這需要 CareScout 業務實現收支平衡，我們認為這大約需要 5 年。一旦他們能夠成為我們預期的定期股利支付者，那麼分拆選項就是可行的。

Okay, great. No, that makes sense. Thank you.

好的，太好了。不，這很有道理。謝謝。

(Operator Instructions)

（操作員指示）

Pete Enderlin, MAZ Partners.

皮特恩德林（Pete Enderlin），MAZ Partners。

Morning, What about the possibility of, at some point, initiating a common stock dividend? I don't know if there are any specific restrictions now, but those could go away if you get the amount from AXA?

早安，在某個時候，是否有可能開始發放普通股股利？我不知道現在是否有任何具體限制，但如果您從 AXA 獲得金額，這些限制可能會消失？

So Pete, it's a good question. We get it quite a bit. I would say, we talk a lot to our shareholders. I would say at this point, the vast majority of shareholders, 80% or more are encouraging us to use excess cash for buybacks versus debt repurchases unless they are good pricing in the market for the debt. So we continue to look at other opportunities because shareholders prefer the repurchases versus instituting a regular dividend, which certainly is a possibility and option.

所以 Pete，這是個好問題。我們對此了解頗多。我想說，我們與股東進行了很多交流。我想說，目前絕大多數股東（80％或更多）都鼓勵我們使用多餘的現金進行回購而不是債務回購，除非他們在市場上對債務進行了良好的定價。因此，我們繼續尋找其他機會，因為股東更喜歡回購而不是設立定期股息，這當然是一種可能性和選擇。

At this point, we decided not to look at a dividend. But the Board and management look at that on an ongoing basis. So that could be a possibility at some point.

此時，我們決定不考慮股利。但董事會和管理階層會持續關注這個問題。所以從某種程度上來說這是有可能的。

Okay, thanks a lot.

好的，非常感謝。

Thank you, Pete.

謝謝你，皮特。

Ryan Krueger, KBW.

瑞安·克魯格（Ryan Krueger），KBW。

Thanks. Sorry, one more on the lawsuit. Is there any consideration or potential for a settlement that would just eliminate the possibility of an appeal? And the reason I ask is it sounds like what could happen is you'll receive the $750 million soon.

謝謝。抱歉，關於訴訟還有一件事。是否存在任何考慮或可能達成和解以消除上訴的可能性？我之所以問這個問題，是因為這聽起來像是你很快就會收到 7.5 億美元。

But then if they were to grant Santander the right to appeal, you'd at least have a risk of having to pay back proceeds, which I would think would then make it more difficult to deploy all of them. So I wanted to hear any thoughts on it that if there's any possibility there?

但如果他們授予桑坦德銀行上訴的權利，你至少會有償還收益的風險，我認為這會使部署所有收益變得更加困難。所以我想聽聽大家對此的看法，看看是否有這種可能性？

So Ryan, what I would say is you never know on settlement. I would go back to what we've been saying for a number of years. We've always thought that the liability for these misselling claims was on the bank, Santander, not on the insurance companies, which we owned and then AXA bought. So we always thought we had a strong case. I think the court decision is pretty clear that they agreed with that.

所以瑞安，我想說的是，你永遠不知道解決方案是什麼。我想回顧一下我們多年來一直在談論的事情。我們一直認為，這些誤導性銷售索賠的責任在於桑坦德銀行，而不是我們擁有並隨後被安盛收購的保險公司。所以我們一直認為我們有充分的理由。我認為法院的判決非常明確地表明他們同意這一點。

So we're open -- always open to talking but because we feel very good about the prospects of prevailing if there is an appeal and it's granted, I think if -- the only thing that I would consider would be some time value of money.

因此，我們持開放態度——始終願意進行談判，但因為我們對上訴並獲得批准後的勝訴前景感到非常樂觀，所以我認為——我唯一會考慮的就是金錢的時間價值。

I will -- I want Greg to comment because with the payment being made that actually doesn't come to us. It's paid to AXA. But Greg, do you want to just cover how the process works when the payment is made -- even whether -- and then talk about then how that interacts with whether an appeal is granted or not by the type of Appellate Court.

我會的——我希望格雷格發表評論，因為付款實際上並沒有到達。這筆錢已支付給 AXA。但是格雷格，你是否只想介紹一下付款時的流程是如何進行的——甚至是否——然後討論一下這與上訴法院是否批准上訴有何關聯。

Sure. That's exactly right, Tim. As both you and Jerome made clear in your prepared remarks, -- in fact, if Santander pays the judgment on August 15, that payment goes to AXA, but if the appeal process is still underway, that is a request for permission to appeal has been made or if it has been granted. AXA doesn't pay Genworth its share of the recovery until all appeals have been favorably resolved. So that is the process of -- that's how that would work.

當然。完全正確，蒂姆。正如您和傑羅姆在準備好的發言中明確表示的那樣，事實上，如果桑坦德銀行在 8 月 15 日支付判決金額，那麼這筆款項將支付給 AXA，但如果上訴程序仍在進行中，則表明已經提出上訴許可請求或已獲得批准。在所有上訴都得到妥善解決之前，AXA 不會向 Genworth 支付其應得的賠償份額。這就是整個過程——它就是這樣運作的。

As far as settlement, I agree with all of Tom's remarks, we feel optimistic about our ability to rebut any appeal that's made even if permission is granted.

至於解決方案，我同意湯姆的所有言論，即使獲得許可，我們也對我們反駁任何上訴的能力感到樂觀。

Okay, thanks for that clarification. So you won't receive the proceeds on August 15. The -- you'll receive the proceeds possibly a few months later if the request is denied, but if not, it won't be until that process is completed?

好的，謝謝你的澄清。因此您不會在 8 月 15 日收到收益。如果請求被拒絕，您可能會在幾個月後收到收益，但如果沒有，那麼要等到該過程完成之後才能收到收益？

That's right. If for some reason, Santander does not seek request for permission to appeal, that would put an end to it or if they do request permission, then two to three months after that, if the request is denied, if it's granted, then somewhere 12 to 18 months once the appeal is resolved and favorably decided.

這是正確的。如果出於某種原因，桑坦德銀行不尋求上訴許可，那麼上訴就會結束；或者，如果他們確實請求許可，那麼在兩到三個月後，如果請求被拒絕，如果獲得批准，那麼在上訴得到解決並做出有利決定後，大約需要 12 到 18 個月的時間。

Okay, I understood. Thanks.

好的，我明白了。謝謝。

Josh Esterov, CreditSights.

Josh Esterov，CreditSights。

Hello, good morning. Thank you for taking my question. I appreciate the commentary on thinking about the deployment of the litigation proceeds, but does the receipt of funds perhaps give you an opportunity to maybe recalibrate where you want to be in certain categories, for example, like a target level of holdco liquidity or target level of overall indebtedness. Just wondering if the actual receipt of funds make you revisit any of these or any other items?

你好早安。感謝您回答我的問題。我很欣賞關於訴訟收益部署的評論，但收到資金是否可能給你一個機會來重新調整你想要在某些類別中的位置，例如，控股公司流動性的目標水平或整體負債的目標水平。只是想知道實際收到的資金是否會讓您重新審視這些或任何其他項目？

Josh, good morning. This is Jerome. Thank you for the question. Josh, this is Jerome. Thank you for the question. I would first highlight that, of course, when we get a quantum of proceeds of this magnitude, we will be assessing all options and how we allocate that capital. I think Tom and I both highlighted, we're going to follow our normal capital allocation approach. We'll be looking at holding company cash, but I have to tell you, we're very comfortable with where we are in the buffer that we hold, which is 2 times our debt service.

喬希，早安。這是傑羅姆。謝謝你的提問。喬希，這是傑羅姆。謝謝你的提問。我首先要強調的是，當然，當我們獲得如此規模的收益時，我們將評估所有選擇以及如何分配這些資本。我認為湯姆和我都強調，我們將遵循正常的資本配置方法。我們將專注於控股公司現金，但我必須告訴你，我們對所持有的緩衝資金感到非常滿意，這是我們債務服務的兩倍。

And I would just also highlight to you, Josh, when you think about our leverage right now, excluding US Life, we're 20% -- right around 20%. We had debt service of around $50 million per year. We have 6 times interest coverage. So we're comfortable with where we are and the leverage.

喬希，我還要向你強調一下，當你想到我們現在的槓桿率時，不包括美國人壽，我們的槓桿率是 20%——大約是 20%。我們每年的債務償還額約為 5,000 萬美元。我們的利息覆蓋率是6倍。因此，我們對目前的狀況和影響力感到滿意。

But back to your macro question, of course, we will evaluate everything. We're pleased with the outcome of the case, but we're comfortable with holding company cash. We're comfortable with our leverage. So we will most likely continue to focus on share buybacks when our share price is trading at this level.

但回到你的宏觀問題，當然，我們會評估一切。我們對案件的結果感到滿意，但我們對持有公司現金感到滿意。我們對自己的槓桿率感到滿意。因此，當我們的股價處於這一水平時，我們很可能會繼續關注股票回購。

Got it. Thank you very much.

知道了。非常感謝。

Colin Devine, C. Divine and Associates.

Colin Devine，C. Divine 和 Associates。

Good morning, gentlemen. I had two questions, and none of them are on the Santander. I think we've gotten to the bottom of that. The first one, can you give us a little more color on the LTC recapture, the size of the policy and also clarify with the $26 million gain pre or post-tax? And then the second question relates to the new LTC products. Are they being written either the legacy companies, i.e., GLIC? Or are you going to be offering those out of CareScout insurance?

先生們，早安。我有兩個問題，但都與桑坦德銀行無關。我想我們已經弄清楚這件事了。第一個問題，您能否向我們詳細介紹 LTC 回收、保單規模以及 2,600 萬美元的收益是稅前還是稅後？第二個問題與新的 LTC 產品有關。它們是由傳統公司（即 GLIC）編寫的嗎？或者您打算透過 CareScout 保險提供這些服務嗎？

So we'll let Jerome have the first one, and Colin, I'll take the second one, and nice to hear from you, Colin.

因此，我們讓傑羅姆獲得第一個，而科林，我將獲得第二個，很高興收到你的來信，科林。

Thanks Tom.

謝謝湯姆。

Thank you for the question on the recapture. I would dimension this as the business was ceded to us some time ago, and it ultimately became subject to arbitration. The ceding company had requested a return of assets and reserves that were simply, in our view, materially higher than what we believe to be fair. And therefore, it became subject to arbitration. The outcome of the arbitration was favorable to Genworth and the arbiters agreed with our lower return of assets and reserves.

感謝您提出有關重新捕獲的問題。我會對此進行衡量，因為這項業務不久前就被轉讓給我們，並且最終成為仲裁的對象。我們認為，轉讓公司要求返還的資產和儲備金遠高於我們認為的公平水準。因此，它成為仲裁的對象。仲裁結果對 Genworth 有利，仲裁員同意我們降低資產和儲備金的回饋。

And the settlement was final in May, giving rise to this onetime gain. I will highlight, we paid roughly $24 million and add $50 million on the books for US GAAP. So that's how you get to the $26 million.

和解已於五月最終完成，從而帶來了這筆一次性收益。我要強調的是，我們支付了大約 2400 萬美元，並根據美國 GAAP 在帳面上增加了 5000 萬美元。這就是你得到 2600 萬美元的方法。

So Colin, any follow-up on that for Jerome. And if not, I'll take the second question.

那麼科林，傑羅姆對此還有什麼後續消息嗎？如果沒有，我將回答第二個問題。

Sure, Tom. Can you just give us a sense of the size of the underlying liabilities related to that treaty? And if you're comfortable, who the arbitration was with on the other side?

當然，湯姆。您能否向我們介紹一下與該條約相關的潛在負債規模？如果您放心的話，另一方與誰進行仲裁？

The arbitration was with Blue Cross, Blue Shield in Nebraska. It has been disclosed in our publicly filed documents. And the quantum of the liability was $50 million. The reserves that we had on the books was roughly $50 million for US GAAP.

仲裁是在內布拉斯加州的 Blue Cross, Blue Shield 進行的。它已在我們公開提交的文件中披露。而責任金額為5000萬美元。根據美國公認會計準則，我們帳面上的儲備金約為 5,000 萬美元。

Gas. Okay, thank you. Sorry, I didn't quite pick up that before. Okay, thank you.

氣體。好的，謝謝。抱歉，我之前沒太明白這一點。好的，謝謝。

Yeah. Thank you, Colin, for the question. Turning to your second part on long-term care. So just to remind you, we view the Genworth legacy life operating companies to be stand-alone, separate self-sustaining and all of the new business that we're writing, the new Long-Term Care Insurance business. So the first product, which I said has been approved for sale in 29 states.

是的。謝謝科林提出的問題。轉到有關長期護理的第二部分。因此，需要提醒您的是，我們認為 Genworth 傳統人壽保險公司是獨立的、可獨立維持的，並且我們正在進行的所有新業務，即新的長期護理保險業務。所以我說的第一款產品已經獲准在 29 個州銷售。

And we'd like to have 30 of the 35, and there's no magic number there before we launch. So that's a traditional long-term care insurance product that we think is priced conservatively good returns for us.

我們希望能夠擁有 35 個中的 30 個，但在我們推出之前，並沒有一個神奇的數字。因此，我們認為這是一款傳統的長期照護保險產品，其定價保守，可以為我們帶來良好的回報。

And with the fact that we will be reviewing the pricing assumptions against reality over time and seeking increases if we need to, although this product is designed where we won't need an increase, but it's hard to be sure of that given that the duration of the liability is 30 years. As I also said, we're now in the process. We filed with insurance compact, which is 23, 24 states for a worksite version of that product.

事實上，我們會隨著時間的推移根據實際情況審查定價假設，並在需要時尋求增加價格，儘管該產品的設計不需要增加價格，但考慮到責任期限為 30 年，很難確定這一點。正如我所說，我們現在正處於這個過程中。我們提交了保險協議，該產品的工作現場版本涵蓋 23、24 個州。

And then we have an annuity hybrid new product design that we're working on. We expect that to come out sometime in early next year and then we'll expand the offerings from there. All of those products will be -- I mean, we're funding this new insurance company, CareScout Insurance Company. It's domiciled in Virginia with $85 million, and that new company will be the issuer of all the new long-term care insurance or funding solutions going forward.

然後我們正在進行年金混合新產品的設計。我們預計該產品將於明年年初推出，然後我們將擴大產品範圍。所有這些產品都將——我的意思是，我們正在為這家新的保險公司 CareScout 保險公司提供資金。該公司註冊於維吉尼亞州，資產規模為 8,500 萬美元，未來該新公司將成為所有新的長期照護保險或融資解決方案的發行人。

Tom, just to clarify that CareScout Insurance, that is the former Genworth insurance company? Is that correct?

湯姆，只是想澄清一下，CareScout 保險公司，也就是以前的 Genworth 保險公司？對嗎？

Well, the Genworth insurance company -- we did buy a shell company many years ago in North Carolina. We rebranded that CareScout. So going forward, the new services business and insurance business, we branded CareScout and then it was redomicile to Virginia. So -- and that's CareScout Insurance Company.

嗯，Genworth 保險公司——我們多年前確實在北卡羅來納州購買了一家空殼公司。我們將其重新命名為 CareScout。因此，展望未來，我們將新的服務業務和保險業務命名為 CareScout，然後將其遷至維吉尼亞州。這就是 CareScout 保險公司。

Thank you, and that is -- just to clarify, that is owned directly by the holding company.

謝謝，需要澄清的是，這是由控股公司直接擁有的。

It's not in the chain that owns the three Genworth legacy life company. Thank you, Colin. Nice to hear from you.

它並不在擁有三家 Genworth 遺產人壽公司的連鎖店內。謝謝你，科林。很高興收到你的來信。

Thank you very much appreciate it.

非常感謝。

Thank you, Colin. Nice to hear from you.

謝謝你，科林。很高興收到你的來信。

Yeah, we'll keep in touch.

是的，我們會保持聯絡。

Ladies and gentlemen, I will now turn the call back over to Mr. McInerney for closing comments.

女士們、先生們，現在我將把發言權交還給麥金納尼先生，請他發表最後評論。

Karen, thank you very much, and I want to thank Ryan, Pete, Josh and Colin for their questions. I think they are very good questions, and obviously, a lot of our shareholders, investors in the market are interested in that. So I think we're doing a great job on our three strategic priorities. We're very pleased with the way the AXA litigation played out. We think the judge got it right.

凱倫，非常感謝你，我也要感謝瑞安、皮特、喬希和科林提出的問題。我認為這些問題非常好，顯然我們的許多股東、市場投資者都對此感興趣。所以我認為我們在三個戰略重點上做得很好。我們對 AXA 訴訟的結果非常滿意。我們認為法官的判決是正確的。

And going forward, we're very optimistic about the growth in CareScout, both on the services side with our CareScout Quality Network on the insurance side. We now have the benefit of the potential AXA proceeds when an appeal is resolved. And plus, as Rohit in the earlier call today, if any of you were on that for Enact that they have increased their capital return for all shareholders this year from $350 million to $400 million.

展望未來，我們對 CareScout 的成長非常樂觀，包括服務方面以及保險方面的 CareScout 品質網絡。當上訴得到解決時，我們現在可以獲得 AXA 的潛在收益。另外，正如 Rohit 在今天稍早的電話會議上所說，如果你們當中有人知道 Enact 的情況，那麼他們今年已將所有股東的資本回報從 3.5 億美元提高到了 4 億美元。

And so we still have, obviously, a very strong cash -- free cash flow generator in Enact. So we feel we're in very good shape going forward. And we look forward to an increase in return, obviously, with the significant new proceeds, significant more capital return through to shareholders, principally through the buybacks.

因此，顯然，我們在 Enact 中仍然擁有非常強大的現金——自由現金流產生器。因此，我們感覺未來情況非常好。我們期待回報的增加，顯然，隨著大量新收益的增加，透過回購，股東將獲得更多的資本回報。

We'll look at the data opportunistically. But as Jerome said, at 20%, if you take all the GAAP equity of the life companies out, we're still among the lowest debt to capital in the industry, very low $50 million of annual interest. So we feel in a very, very good position. And for those of you who have followed us for a long time, I mean, I think we're stronger today than we've ever been, and we now have a significant improvement in the financial strength of the company. Obviously, those proceeds represent a big part of our existing market cap.

我們將適時地查看數據。但正如傑羅姆所說，如果將人壽保險公司的所有 GAAP 股權扣除 20% 的比率，我們的資本負債率仍是業內最低的，年利息僅為 5,000 萬美元。因此，我們感覺自己處於非常非常有利的地位。對於那些長期關注我們的人來說，我的意思是，我認為我們今天比以往任何時候都更加強大，而且我們公司的財務實力現在有了顯著的提高。顯然，這些收益占我們現有市值的很大一部分。

I want to thank all of you for the call. I want to thank the four questioners. I think there were questions that we get a lot and look forward to updating you next quarter. Thank you very much. And with that, Karen, I'll turn the call back to you.

我要感謝大家的來電。我要感謝四位提問者。我認為我們收到了很多問題，並期待下個季度向您更新最新情況。非常感謝。就這樣，凱倫，我把電話轉回給你。

Ladies and gentlemen, this concludes Genworth Financial's second quarter conference call. Thank you for your participation. At this time, the call will end.

女士們、先生們，Genworth Financial 第二季電話會議到此結束。感謝您的參與。此時，通話將會結束。